Simgas Kenya Limited€¦ · In accordance with the company's Articles of Association, no director...

Simgas Kenya Limited

Annual report and financial statements

For the year ended 31 December 2017

CONTENTS PAGE

Company information 1

Report of the directors 2 - 3

Statement of directors' responsibilities 4

Report of the independent auditor 5 - 7

Financial statements:

Statement of profit or loss 8

Statement of financial position 9

Statement of changes in equity 10

Statement of cash flows 11

Notes 12 - 20

The following pages do not form an integral part of these financial statements

Cost of sales 21

Schedule of expenditure 22




COMPANY INFORMATION

BOARD OF DIRECTORS : Mirik Castro

: Samuel Castro

REGISTERED OFFICE : Migwani Road 4

: Off Enterprise Road, Industrial Area

: P.O. Box 104600, 00101

: NAIROBI

INDEPENDENT AUDITOR : PKF Kenya

: Certified Public Accountants

: P.O. Box 14077, 00800

: NAIROBI

COMPANY SECRETARY : Equatorial Secretaries and Registrars

: Certified Public Secretaries

: P.O. Box 47323, 00100

: NAIROBI

PRINCIPAL BANKER : Equity Bank Limited

: Donholm Branch

: P. O. Box 5328, 00100

: NAIROBI

1




REPORT OF THE DIRECTORS

The directors submit their report and the audited financial statements for the year ended 31

December 2017, which disclose the state of affairs of the company.

PRINCIPAL ACTIVITY

The principal activity of the company is developing biogas systems for household use.

BUSINESS REVIEW

During the year 2017 the total turnover of the company increased from Shs. 5,173,186 to Shs.

26,405,457. This was mainly attributed to a change in revenue recognition model to commissioning

date and also increase in projects put up in the year. The loss before tax increased from

Shs. 52,224,033 to a loss of Shs. 142,797,388 reflecting the effects of increase in direct cost,

administrative and finance costs.

PRINCIPAL RISKS AND UNCERTAINTIES

The overall business environment continues to remain challenging and this has a resultant effect

on overall demand of the company's products and services. The company's strategic focus is to

enhance sales growth whilst maintaining profit margins, the success of which remains dependent

on overall market conditions.

Credit risk

The company’s principal financial assets are cash and bank balances and trade and other

receivables. The company’s credit risk is primarily attributable to its trade receivables. The

amounts presented in the balance sheet are net of allowances for doubtful receivables. An

allowance for impairment is made where there is an identified loss event which, based on previous

experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on

cash and bank balances is limited because the counterparties are banks with high credit-ratings

assigned by international credit-rating agencies. The company has no significant concentration of

credit risk, with exposure spread over a number of counterparties.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations

and future developments, the company monitors its need for cash on a regular basis and takes

appropriate action through intercompany and banking financing arrangements.

DIVIDEND

The directors do not recommend the declaration of a dividend for the year (2016: Nil).

DIRECTORS

The directors who held office during the year and to the date of this report are shown

on page 1.

In accordance with the company's Articles of Association, no director is due for retirement by

rotation.

2




STATEMENT AS TO DISCLOSURE TO THE COMPANY'S AUDITOR

With respect to each director at the time this report was approved:

(a) there is, so far as the person is aware, no relevant audit information of which the

company's auditor is unaware; and

(b) the person has taken all the steps that the person ought to have taken as a director so

as to be aware of any relevant audit information and to establish that the company's

auditor is aware of that information.

TERMS OF APPOINTMENT OF THE AUDITOR

PKF Kenya continues in office in accordance with the company's Articles of Association

and Section 719 of the Kenyan Companies Act, 2015. The directors monitor the

effectiveness, objectivity and independence of the auditor. The directors also approve the

annual audit engagement contract which sets out the terms of the auditor's appointment

and the related fees.

BY ORDER OF THE BOARD

Mirik Castro

DIRECTOR

NAIROBI

July 9, 2018

3

SimGas Kenya Limited



STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Kenyan Companies Act, 2015 requires the directors to prepare financial statements for each financial

year which give a true and fair view of the state of affairs of the company as at the end of the financial year

and of its profit or loss for that year. It also requires the directors to ensure that the company keeps proper

accounting records that are sufficient to show and explain the transactions of the company; that disclose,

with reasonable accuracy, the financial position of the company and that enable them to prepare financial

statements of the company that comply with the International Financial Reporting Standard for Small and

Medium Sized Entities and the requirements of the Kenyan Companies Act, 2015. The directors are also

responsible for safeguarding the assets of the company and for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

The directors accept responsibility for the preparation and fair presentation of the financial statements in

accordance with the International Financial Reporting Standard for Small and Medium Sized Entities and in

the manner required by the Kenyan Companies Act, 2015. They also accept responsibility for:

i. Designing, implementing and maintaining such internal control as they determine is necessary to

enable the preparation of financial statements that are free from material misstatement, whether due to

fraud or error;

ii. Selecting and applying appropriate accounting policies; and

iii. Making accounting estimates and judgements that are reasonable in the circumstances;

The directors are of the opinion that the financial statements give a true and fair view of the financial position

of the company as at 31 December 2017 and of the company’s financial performance and cash flows for the

year then ended in accordance with International Financial Reporting Standard for Small and Medium Sized

entities and the requirements of the Kenyan Companies Act, 2015.

In preparing these financial statements the directors have assessed the company's ability to continue as a

going concern. Nothing has come to the attention of the directors to indicate that the company will not

remain a going concern for at least the next twelve months from the date of this statement.

The directors acknowledge that the independent audit of the financial statements does not relieve them of

their responsibilities.

Approved by the board of directors on July 9, 2018 signed on its behalf by:

DIRECTOR DIRECTOR

4




STATEMENT OF PROFIT OR LOSS

2017 2016

Notes Shs Shs

Revenue 4 26,405,457 5,173,186

Cost of sales (33,466,977) (20,176,320)

Gross (loss) (7,061,520) (15,003,134)

Other operating income 5 8,633,830 10,983,457

Administrative expenses (92,144,984) (36,447,841)

Other operating expenses (3,844,709) (3,290,904)

Operating (loss) (94,417,383) (43,758,422)

Finance cost 8 (48,380,005) (8,465,611)

(Loss) before tax (142,797,388) (52,224,033)

Tax charge 9 - -

(Loss) for the year (142,797,388) (52,224,033)

The notes on pages 12 to 20 form an integral part of these financial statements.

Report of the independent auditor - pages 5 to 7.

8




STATEMENT OF FINANCIAL POSITION

As at 31 December

CAPITAL EMPLOYED

Share capital

Retained earnings

2017

Notes Shs

10 100,000

(265,173,072)

2016

Shs

100,000

(122,375,684)

Shareholders' deficit (265,073,072) (122,275,684)

Non-current liabilities

Borrowings 11 343,478,055 153,565,572

343,478,055

78,404,983

153,565,572

31,289,888

REPRESENTED BY

Non-current assets

Plant and equipment

Intangible assets

12 1,946,030

13 -

2,763,251

45,150

1,946,030 2,808,401

Current assets

Inventories 14

Trade and other receivables 15

Cash and cash equivalents 16

8,997,771

82,003,987

2,427,200

2,923,884

62,089,483

181,254

93,428,958 65,194,621

Current liabilities

Trade and other payables 17

Borrowings 11

15,848,377

1,121,628

35,444,686

1,268,448

16,970,005 36,713,134

Net current assets 76,458,953 28,481,487

78,404,983 31,289,888

The financial statements on pages 8 to 20 were approved and authorised for issue by the

Board of Directors on 9th of July 2018 and were signed on its behalf by:

____________________DIRECTOR ____________________DIRECTOR



9




STATEMENT OF CHANGES IN EQUITY

Share Retained

capital earnings Total

Shs Shs Shs

Year ended 31 December 2016

At start of year 100,000 (70,151,651) (70,051,651)

(Loss) for the year - (52,224,033) (52,224,033)

At end of year 100,000 (122,375,684) (122,275,684)


At start of year 100,000 (122,375,684) (122,275,684)

(Loss) for the year - (142,797,388) (142,797,388)

At end of year 100,000 (265,173,072) (265,073,072)



10




STATEMENT OF CASH FLOWS

2017 2016

Operating activities Notes Shs Shs

(Loss) before tax (142,797,388) (52,224,033)

Adjustment for:

Depreciation on plant and equipment 12 936,601 1,211,074

Amortisation on intangible assets 13 45,150 36,120

Interest expense 19,268,791 5,794,894

Foreign exchange loss 29,111,214 2,670,717

Changes in working capital:

- inventories (6,073,887) 2,582,957

- trade and other receivables (19,914,504) (38,494,645)

- trade and other payables (19,596,309) 16,710,465

Cash (used in) operations (139,020,332) (61,712,451)

Interest paid (19,268,791) (5,794,894)

Net cash (used in) operating activities (158,289,123) (67,507,345)

Investing activities

Cash paid for purchase of plant and equipment 12 (119,380) -

Net cash (used in) investing activities (119,380) -

Financing activities

Net movement in borrowings 189,912,483 70,311,062

Net cash from financing activities 189,912,483 70,311,062

Increase in cash and cash equivalents 31,503,980 2,803,717

Movement in cash and cash equivalents

At start of year 34,434 (98,566)

Increase 31,503,980 2,803,717

Effect of exchange rate changes (29,111,214) (2,670,717)

At end of year 16 2,427,200 34,434



11




NOTES

The principal accounting policies adopted in the preparation of these financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

1. General Information

Simgas Kenya Limited is incorporated in Kenya under the Kenyan Companies Act, 2015 as a private

company limited by shares, and is domiciled in Kenya. The principal activity of the company is

production of biogas. The address of its registered office and principal place of business is Migwani

Road 4, Off Enterprise Road, Industrial Area.

2 a) Basis of preparation

These financial statements have been prepared in accordance with the International Financial

Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) issued by the International

Accounting Standards Board. They are presented in Kenya Shillings (Shs). The measurement basis

used is the historical cost basis.

The preparation of financial statements in conformity with IFRS for SMEs require the use of certain

critical accounting estimates. It also requires management to exercise its judgement in the process of

applying the company's accounting policies.

These financial statements comply with the requirements of the Kenyan Companies Act, 2015. The

statement of profit or loss represent the profit and loss account referred to in the Act. The statement of

financial position represents the balance sheet referred to in the Act.

b) Key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting

estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial year are disclosed below.

- Useful lives of plant and equipment - Management reviews the useful lives and residual

values of the items of property, plant and equipment on a regular basis. During the financial year,

the directors determined no significant changes in the useful lives and residual values.

c) Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and

performance of services in the ordinary course of business and is stated net of Value Added Tax (VAT),

rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it

is probable that future economic benefits will flow to the entity and when the specific criteria

have been met for each of the company's activities as described below. The amount of revenue

is not reliably measured until all contingencies relating to the sale have been resolved. The

company bases its estimates on historical results, taking into consideration the type of

customer, type of transaction and specifics of each arrangement, as described below.

(i) Sales of services are recognised upon performance of services rendered by reference to the

stage of completion of the service contract;

(ii) Grant income is accounted for on a receipt basis.

12

Simgas Kenya LimitedAnnual report and financial statementsFor the year ended 31 December 2017NOTES (CONTINUED)

d) Plant and equipment

All plant and equipment is initially recorded at cost and thereafter stated at historical cost lessdepreciation. Historical cost comprises expenditure initially incurred to bring the asset to itslocation and condition ready for its intended use.

Subsequent costs are included in the asset’s carrying amount or recognised as a separateasset, as appropriate, only when it is probable that future economic benefits associated withthe item will flow to the company and the cost can be reliably measured. The carrying amountof the replaced part is derecognised. All other repairs and maintenance are charged to profit orloss during the financial period in which they are incurred.

Depreciation is calculated on a straight line basis to write down the cost of each asset, to its residual value over its estimated useful life using the following annual rates:

Rate %Furniture and fittings 12.5Office equipment 12.5Computer equipment 30Motor vehicle 25

An asset's carrying amount is written down immediately to its recoverable amount if theasset's carrying amount is greater than its estimated recoverable amount.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at eachreporting date.

Gains and losses on disposal of plant and equipment are determined by comparing theproceeds with the carrying amount and are taken into account in determining operating profit.

The normal policy is to provide for depreciation for the full year on additions during the year anddepreciation is not provided when the assets are disposed.

e) Intangible assets

Software costs

Computer software programmes are capitalised on the basis of the costs incurred to acquireand bring to use the specific software. These costs are amortised on a straight line basis overtheir useful lives which are estimated to be 5 years.

Costs associated with developing or maintaining computer software programmes are recognisedas an expense as incurred. Costs that are directly associated with the acquisition of identifiableand unique software products controlled by the company, and that will probably generateeconomic benefits exceeding costs beyond one year, are recognised as intangible assets.

f) Financial assets

Trade receivables are initially recognised at the transaction price. Most revenue transactions aremade on the basis of normal credit terms, and the receivables do not bear interest. At the end ofeach reporting period, the carrying amounts of trade and other receivables are reviewed todetermine whether there is any objective evidence that the amounts are not recoverable. If so, animpairment loss is recognised immediately in the profit and loss.

g) Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash inhand and cash at bank.

In the statement of financial position, bank overdrafts are included within borrowings in current liabilities.

13




NOTES (CONTINUED)

h) Financial liabilities

Trade payables are obligations on the basis of normal credit terms and do not bear interest.

i) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined by the

first-in-first-out (FIFO) method. The cost of finished goods and work-in-progress comprises raw

materials, direct labour, other direct costs and related production overheads (based on normal

operating capacity), but excludes borrowing costs. Net realisable value is the estimate of the

selling price in the ordinary course of business, less the costs of completion and selling expenses.

At each reporting date, inventories are assessed for impairment. If inventory is impaired, the

carrying amount is reduced to its selling price less costs to complete and sell; the impairment

loss is recognised immediately in profit or loss.

j) Borrowing costs

Borrowings are initially recognised at transaction price, net of transaction costs incurred and are

subsequently stated at amortised cost. Any difference between the proceeds (net of transaction

costs) and the redemption value is recognised as interest expense in the income statement under

finance costs.

Borrowings are classified as current liabilities unless the company has an unconditional right to

defer settlement of the liability for at least 12 months after the reporting date.

k) Current and Deferred tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or

loss, except to the extent that it relates to items recognised in the comprehensive income or in

equity. In this case, the tax is also recognised in other comprehensive income and equity.

The current income tax charge is calculated on the basis of tax rates and laws that have been

enacted or substantively enacted by the reporting date.

Deferred income tax is recognised on temporary differences (other than temporary differences)

associated with unremitted earnings from foreign subsidiaries and associates to the extent that

the investment is essentially permanent in duration, or temporary differences associated with the

initial recognition of goodwill) arising between the tax bases of assets and liabilities and their

carrying amounts in the financial statements and on unused tax losses or tax credits in the

company. Deferred income tax is determined using tax rates and laws that have been enacted

or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation

allowance is set up against deferred tax assets so that the net carrying amount equals the highest

amount that is more likely than not to be recovered based on current or future taxable profit.

l) Translation of foreign currencies

Transactions in foreign currencies during the year are converted into Kenya Shillings at rates ruling

at the transaction dates. Assets and liabilities at the statement of financial position date which are

expressed in foreign currencies are translated into Kenya Shillings at rates ruling at that date. The

resulting differences from conversion and translation are dealt with in profit or loss in the year in

which they arise.

14




NOTES (CONTINUED)

m) Leases

Leases of assets under which a significant portion of the risks and rewards of ownership are

effectively retained by the lessor are classified as operating leases. Payments made under

operating leases are charged to profit or loss on a straight line basis over the period of the lease.

n) Retirement benefit obligations

The company and its employees contribute to the National Social Security Fund, a statutory

defined contribution scheme registered under the NSSF Act. The company's contributions to the

defined contribution scheme is charged to profit or loss in the year in which they relate. The

company has no further obligation once the contribution has been paid.

o) Share capital

Ordinary shares are classified as equity.

p) Comparatives

Where necessary, comparative figures have been adjusted to conform with changes in

presentation in the current year.

15




NOTES (CONTINUED)

3. Going concern

The company incurred a net loss of Shs. 142,797,388 for the year (2016: Shs. 52,224,033).

As at 31 December 2017, there was a deficiency in shareholders funds of Shs. 265,073,072

(2016: Shs. 122,275,684) . The financial statements have however been prepared on the normal

going concern basis, the applicability of which is dependent upon continued support from the

financiers and shareholders.

2017 2016

4. Revenue Shs Shs

Sale of goods 26,405,457 5,173,186

5. Other operating income

Grants received 8,045,031 10,973,112

Discounts received - 10,345

Biogas Subsidy 588,800 -

8,633,830 10,983,457

6. Operating (loss)

The following items have been charged in arriving at

operating (loss):

Auditor's remuneration

- current year 315,000 300,000

Salaries and wages 38,488,541 24,903,946

Depreciation on plant and equipment (Note 12) 936,601 1,211,074

Amortisation on intangible assets (Note 13) 45,150 36,120

7. Staff costs


Other staff costs 2,573,774 514,862

38,488,541 24,903,946

The average number of persons employed during

the year were: 80 44

8. Finance cost

Net foreign exchange loss 29,111,214 2,670,717

Interest expense 19,268,791 5,794,894

48,380,005 8,465,611

16




NOTES (CONTINUED)

9. Tax 2017 2016

Shs Shs

Current tax - -

Deferred tax (Note 18) - -

- -

The tax on the company's (loss) before tax differs from the

theoretical amount that would arise using the basic rate

as follows:

(Loss) before tax (142,797,388) (52,224,033)

Tax calculated at a tax rate of 30% (2016: 30%) (42,839,216) (15,667,210)

Tax effect of:

- expenses not deductible for tax purposes 12,795,296 1,878,064

- brought forward tax losses on which no deferred tax

has been recognised 62,028,070 31,984,150

- carried forward tax losses on which no deferred tax

has been recognised (31,984,150) (18,195,004)

- -

10. Share capital

Authorised, issued and fully paid1,000 (2016:1,000) ordinary shares of Shs 100 each 100,000 100,000

11. Borrowings

The borrowings are made up as follows:

Non current

Loan from related parties (Note 19(i)) 238,023,578 152,312,408

Other borrowings 105,072,204 -

Asset finance 382,273 1,253,164

343,478,055 153,565,572

Current

Bank overdraft (Note 16) - 146,820

Asset finance 1,121,628 1,121,628

1,121,628 1,268,448

Total borrowings 344,599,683 154,834,020

Bank borrowings are secured by:

(i) Directors personal guarantees;

(ii) Joint registration and hire purchase agreement over the proposed vehicle.

(iii) The loans from related parties are unsecured.

17




NOTES (CONTINUED)

12. Plant and equipment


Furniture and Office Computer Motor

fittings equipment equipment vehicle Total

Shs Shs Shs Shs Shs

Cost

12.5% 12.5% 30% 25%

At start of year 225,875 19,445 1,235,880 3,509,452 4,990,652

Additions - 41,380 78,000 - 119,380

At end of year 225,875 60,825 1,313,880 3,509,452 5,110,032

Depreciation

At start of year 105,878 8,280 1,235,880 877,363 2,227,401

Charge for the year 28,234 7,603 23,400 877,363 936,601

At end of year 134,113 15,883 1,259,280 1,754,726 3,164,002

Net book value 2017 91,762 44,942 54,600 1,754,726 1,946,030

Net book value 2016 119,996 11,165 - 2,632,089 2,763,250

In the opinion of the directors, there is no impairment of plant and equipment.

2017 2016

13. Intangible assets - Software costs Shs Shs

At start and end of year 180,600 180,600

Amortisation

At start of year 135,450 99,330

Charge for the year 45,150 36,120

At end of year 180,600 135,450

Net book value - 45,150

14. Inventories

Finished goods 3,813,827 2,923,884

Work in progress 1,245,060 -

Goods in transit 3,938,884 -

8,997,771 2,923,884

15. Trade and other receivables

Trade receivables 17,109,872 1,623,514

Other receivables 3,112,380 2,471,149

Deposits and prepayments 765,043 641,895

Amount due from related party (Note 19(ii)) 61,016,692 57,352,925

82,003,987 62,089,483

18




NOTES (CONTINUED)

16. Cash and cash equivalents

Cash at bank and in hand 2,427,200 181,254

For the purpose of the statement of cash flows, the year end

cash and cash equivalents comprise the following.

Cash at bank and in hand 2,427,200 181,254

Bank overdraft (Note 11) - (146,820)

2,427,200 34,434

17. Trade and other payables

Trade payables 2,885,690 2,682,129

Other payables 2,421,105 1,134,131

Customer deposits 10,541,583 6,436,481

Amount due to related parties (Note 19 (ii)) - 25,191,945

15,848,377 35,444,686

18. Deferred tax

Deferred tax is calculated on temporary differences under the liability method using a principal

tax rate of 30% (2016: 30%). The movement in the deferred tax account is as follows:

2017 2016

Shs Shs

At start of year - -

Credit to profit or loss (Note 9) - -

At end of year - -

Deferred tax (assets), deferred tax (credit)/charge to profit or loss are attributable to the

following items:

At start (Credit)/charge At end

of year to profit or loss of year

Shs Shs Shs

Deferred tax (asset)

Plant and equipment (112,147) (38,924) (151,071)

Unrealised exchange differences (644,962) (8,093,491) (8,738,453)

Provision for leave - (355,729) (355,729)

Tax losses carried forward (31,227,040) (21,555,776) (52,782,816)

(31,984,149) (30,043,921) (62,028,070)

Deferred tax asset not recognised 31,984,149 30,043,921 62,028,070

Net deferred tax (asset) - - -

Deferred tax assets on tax losses carried forward are only recognised to the extent of certainity of

availability of sufficient future taxable profits to utilise such losses against. Deferred tax assets

amounting to Shs 62,804,104 in respect of tax losses carried forward amounting to Shs 190,834,398

that can be carried forward against future taxable profits have not been recognised.

19




NOTES (CONTINUED)

2017 2016

19. Related party transactions and balances Shs Shs

i) Loan from related parties (Note 11) 238,023,578 152,312,408

The loans to related parties are unsecured

ii) Outstanding balances arising from sale and

purchase of goods/services

Payable to related parties (Note 17) - 25,191,945

Receivable from related party (Note 15) 61,016,692 57,352,925

20. Presentation currency

The financial statements are presented in Kenya Shillings (Shs).

20




COST OF SALES

2017 2016

1. COST OF SALES Shs Shs

Opening stock 2,923,884 5,506,841

Purchases 23,830,398 13,083,738

Producion overheads (1.1 ) 11,771,582 4,509,625

Less: closing stock (5,058,887) (2,923,884)

Total cost of sales 33,466,977 20,176,320

1.1 Producion overheads

Loading and off loading - 25,210

Installation cost 5,681,365 1,526,049

Repairs and maintainance 555,571 342,161

Direct project expenses 208,684 -

Clearing and forwarding charges 991,137 1,185,821

Freight charges 3,371,122 1,107,384

Consultancy expenses 417,482 -

Relocation allowace 546,221 323,000

11,771,582 4,509,625

21




SCHEDULE OF EXPENDITURE

2017 2016

1. ADMINISTRATIVE EXPENSES Shs Shs

Employment:


Staff training and recruitment 470,844 215,471

Staff welfare 2,102,930 299,391

Total employment costs 38,488,541 24,903,946

Other administration expenses:

Printing and stationery 244,688 98,893

Postage and telephone 537,922 775,039

Marketing costs - 328,150

Audit fees

- current year 871,395 300,000

Legal and professional fees 22,483,112 40,000

Research and development 17,918,886 -

Secretarial fees 52,200 64,000

Internet charges 252,405 223,400

Travelling and accomodation 3,725,789 7,596,751

Transportation expenses 1,765,129 379,733

Office expense 905,603 148,389

Commission 245,180 18,566

Bank charges 368,347 366,241

Vehicle running and maintenance 303,904 1,082,206

Fines and penalties 251,007 49,836

Computer expenses 496,563 72,691

Bad debts 3,234,315 -

Total other administration expenses 53,656,443 11,543,895

Total administrative expenses 92,144,984 36,447,841

2. OTHER OPERATING EXPENSES

Establishment expenses

Rent 1,539,268 824,500

Licences and subscriptions 244,284 33,500

Security expenses 31,451 29,091

Electricity and water 47,821 58,794

Insurance 1,000,135 1,097,825

Depreciation on plant and equipment 936,601 1,211,074

Amortisation on intangible assets 45,150 36,120

Total other operating expenses 3,844,709 3,290,904

22

SIMGAS KENYA LIMITED

TAX COMPUTATION

YEAR ENDED: 31 DECEMBER 2017

PERIOD COVERED: 12 MONTHS

PIN NO: P051413196G

KShs KShs

(Loss) before tax as per financial statements (142,797,388)

Add: Depreciation on plant and equipment 936,601

Amotisation of intangible assets 45,150

Bad debts written off 3,234,315

Increase in provision for leave accruals 1,185,764

Staff welfare 164,175

Fines and penalties 231,007

Research and development 17,918,886

Proffessional fees 9,792,292

Interest expense 19,268,791

Unrealised exchange loss for current year 29,128,178 81,905,159

(60,892,229)

Less: Wear and tear allowance 523,831

Grant Income received 8,045,031

Prior year unrealised exchange loss realised 2,355,375

Software allowance 36,120 (10,960,357)

ADJUSTED LOSS (71,852,586)

LOSS BROUGHT FORWARD (104,090,134)

ADJUSTED LOSS CARRIED FORWARD (175,942,720)

Class (ii) Class (iii) Class (iv)

30% 25% 12.5% Total

WEAR AND TEAR SCHEDULE KShs. KShs. KShs. KShs.

Written down values brought forward 356,047 1,500,000 148,938 2,004,985

Additions 78,000 - 41,380 119,380

434,047 1,500,000 190,318 2,124,365

Wear and tear allowance (130,214) (375,000) (18,617) (523,831)

Written down values carried forward 303,833 1,125,000 171,701 1,600,534

ADDITIONS TO SOFTWARE

Allowance Allowance Total Residual

COST up to 2016 for 2017 allowance value C/F

Kshs KShs. KShs. KShs. KShs.

2017 180,600 144,480 36,120 180,600 -

Simgas Kenya Limited€¦ · In accordance with the company's Articles of Association, no director...

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